CHAPTER 7
Strategic Management
LEARNING OBJECTIVES
These will include:
•
Explain the concept of
strategic management and
identify three main levels of
strategy.
•
Outline
the
major
components of the strategic
management process.
•
Describe
the
role
competitive
analysis
of
in
strategy formulation and
explain the major approaches
to such analysis.
•
Describe Porter’s competitive
strategies for the business
level.
•
Enumerate the main generic
strategies available at the
corporate level.
•
Explain the role of strategies
at the functional level.
•
•
Explain the three major
portfolio-strategy approaches
for use at the corporate level.
Outline the process
strategy implementation.
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of
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-2
I. The Concept of Strategic Management
Teaching Idea:
Ask students to update the
strategic direction of companies
described in this chapter. Ask
them to select a company and
assess its strategic direction.
A. Strategic management is a process through which managers formulate
and implement strategies geared to optimising strategic goal achievement,
given available environmental and internal conditions.
1. Strategies are large-scale action plans for interacting with the environment
in order to achieve long-term goals.
2. Most well-run organisations attempt to develop and follow strategies.
B. The strategic management process is made up of several components.
1. Strategy formulation is the part of the strategic management process that
includes the following:
•
•
•
Identifying mission and strategic goals.
Conducting competitive analysis.
Developing specific strategies.
2. Strategy implementation is the part of the strategic management process
that focuses on:
•
•
Carrying out strategic plans.
Maintaining control over how those plans are carried out.
C. Strategic management is important to organisations because it does the
following:
1. Helps organisations identify and develop a competitive advantage, a
significant edge over the competition in dealing with competitive forces.
2. Provides a sense of direction so organisation members know where to
expend their efforts.
3. Helps highlight the need for innovation and provides an organised approach
for encouraging new ideas related to strategies.
Enrichment Module:
“Global Strategy”
4. May have a positive effect on the organisation's financial performance.
D. Many organisations develop strategies at three different levels.
1. Corporate-level strategy is developed by top management and the board of
directors and addresses the following issues:
•
•
•
What businesses the organisation will operate.
How the strategies of those businesses will be co-ordinated to strengthen
the organisation's competitive position.
How resources will be allocated between businesses.
2. Corporate Level strategy often involves the board of directors.
• Board involvement can range from approval of strategic directions (low)
to actual participation in formulation (high).
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-3
•
The board can usually be most helpful by advising on new directions for
growth, suggesting when major strategic changes are needed, and providing
input on the timing of major investments.
Campbell Soup Company’s Board of Directors are intensely involved in the
company’s plans and performance. The Board reviews and approves annually
Campbell’s three year strategic plans and one-year operating goals. The board
evaluates the performance of the CEO at least annually without the CEO present.
In a 1995 self-evaluation, the board concluded that there was a need for broadening
and diversifying the skills of the directors, spend more time on long-range strategic
planning, and improve the quality of director participation and committee reports.
The company has implemented these directives by rotating directors on committees
and upgrading the quality and substance of the reports, increasing the frequency
and length of strategy sessions, and called for active, constructive, and objective
director participation. It has made a remarkable change. Given the strong level of
board involvement with stringent rules has earned the company No 1 spot on
Business Week’s Best Board honour roll. (Business Week, November 25, 1996,
“The Best and the Worst”)
3. Business-level strategy concentrates on the best means of competing within
a particular business while also supporting the corporate-level strategy
•
•
T33: Strategy Formulation/
Strategy Implementation: A
flowchart of the strategic
process. See fig 7-1.
•
and
A strategic business unit (SBU) is a distinct business, with its own set
of competitors, that can be managed reasonably independently of other
businesses within the organisation
The distinction between corporate-level and business-level strategy
applies only to organisations with separate divisions competing in
different industries.
Strategies include deciding the type of competitive advantage to build,
determining responses to changing conditions, allocating resources
coordinating functional-level strategies.
4. Functional-level strategy focuses on action plans for managing a particular
functional area within a business in a way to support business-level strategy.
T34: The Importance of
Strategic Management: An
illustration.
T35: Organisational Levels of
Strategies: A summary of the
three levels of strategies
and
their functions.
• Functional areas include operations, marketing, finance, human
resources management, accounting, research and development, and
engineering.
• Functional strategies are usually developed by functional managers and
are typically reviewed by business unit heads.
5. Coordinating strategies across the three levels is critical in maximising
strategic impact.
II. The Role of Competitive Analysis in Strategy Formulation
A. SWOT analysis is a method of an organisation's competitive situation involving
assessing organisational strengths (S) and weaknesses (W), as well as
environmental opportunities (0) and threats (T).
1. Strengths and weaknesses apply to internal characteristics.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-4
•
Teaching Idea:
Have your students do a SWOT
on themselves and have them
identify their strengths and
weaknesses,
then
analyse
opportunities and threats in
their career field.
•
2. Opportunities and threats are found in the external environment.
•
•
T36: SWOT Analysis:
The process of identifying
competitive advantages.
A strength is an internal characteristic with the potential of improving
the organisation's competitive situation.
A weakness is an internal characteristic leaving the organisation
potentially vulnerable to strategic moves by competitors.
An opportunity is an environmental condition offering significant
prospects for improving an organisation's situation relative to
competitors.
A threat is an environmental condition offering significant prospects for
undermining an organisation's competitive situation.
B. Managers need to consider elements in the mega-environment and the task
environment that can positively or adversely influence an organisation’s ability
to reach its strategic goals.
C. Michael E. Porter's five competitive forces model is an approach to the nature
and intensity of competition in a given industry in terms of five major forces.
1. Rivalry is the extent to which competitors use tactics to lower competitors'
profits.
Price wars are one such tactic. A vicious price war began among the cereal
manufacturer during the summer of 1996, causing major manufacturers to report
significantly lower earnings. Kellogg’s, the country’s largest cereal maker reported
a 43% decline in profits attributed primarily to cereal price cuts of 19 per cent.
General Mills, the number two cereal maker in the country, reported slashing
prices by 11 per cent to stay competitive and plant to increase box size of several
cereal brands without increasing the prices. (Advertising Age, June 24, 1996,
“Cereals to pare ad plans”)
2.. The bargaining power of customers is the extent to which they can force
down prices or bargain for better quality or service.
3. The bargaining power of suppliers is the extent to which they can exert
power over businesses in an industry by threatening to raise prices or reduce
quality of goods and services provided.
4. The threat of new entrants is the threat of a price war if new competitors
can enter the market.
5. The threat of substitute products or services is the extent to which
businesses in other industries can offer substitute products, thus reducing
the profit potential for the industry.
D. An organisational assessment determines how organisational factors affect the
competitive situation.
1. Internal strengths are potential sources of competitive advantage.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-5
•
•
T37: Corporate Strategy:
Illustration of growth, stability
and defensive strategies
A distinctive competence is a unique strength that competitors cannot
easily match or imitate.
Organisational synergy is a state of affairs where two or more
units working together have greater impact than is possible with the
units operating independently
2. Internal weaknesses can leave the organisation vulnerable to competitor
actions that will have an adverse effect on the organisation.
3. A functional audit is an exhaustive appraisal of an organisation and/or its
individual businesses conducted by assessing each major functional area's
important positive and negative attributes.
•
•
III.
An example is assessing currency of equipment in the operations
department.
Managers may assess functional areas in reference to a list of key
success factors in the industry.
Formulating Corporate-Level Strategy: The Grand Strategy
A. A grand strategy (master strategy) provides basic strategic direction at
corporate level.
B. Growth strategies are grand strategies involving organisational expansion on a
major dimension.
1. Concentration focuses on effecting growth of the market for a single
product or service or a small number of closely related products or services.
•
•
•
Market development is gaining a larger share of a current market or
expanding into new ones.
Product development is improving a basic product or service or
expanding into closely related products or services.
Horizontal integration is adding one or more businesses that are similar,
usually by purchasing such businesses.
2. Vertical integration involves effecting growth through production of inputs
previously provided by suppliers or by replacement of a customer role (such
as that of a distributor) by disposing of one's own outputs.
•
•
Backward integration occurs when a business grows by becoming its
own supplier.
Forward integration occurs when organisational growth encompasses a
role previously fulfilled by a customer.
3. Diversification entails effecting growth through development of new areas
which are clearly distinct from current businesses.
•
•
Conglomerate diversification takes place when an organisation
diversifies into areas unrelated to its current business.
Concentric diversification occurs when an organisation diversifies into a
related, but distinct, business.
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4. Growth strategies can be implemented through a number of means.
•
•
•
Internal growth occurs as the organisation expands by building on its
own internal resources.
An acquisition is the purchase of all or part of one organisation by
another.
A merger is the combining of two or more companies into one
organisation.
C. A stability strategy is a grand strategy involves maintaining the status quo or
growing in a methodical, but slow, manner.
1. Small, privately owned businesses are most likely to adopt this strategy.
2. Reasons for adopting a stability strategy are that it:
•
•
•
•
Avoids the risks or hassles of aggressive growth.
Provides an opportunity to recover after a period of accelerated growth.
Lets the company hold on to current market share.
May occur through default.
D. Defensive strategies (sometimes called retrenchment strategies) focus on the
desire or need to reduce organisational operations, usually through cost
reductions (such as cutting back on nonessential expenditures and instituting
hiring freezes) and/or asset reductions (such as selling land, equipment, and
businesses).
1. Harvest entails minimising investments while attempting to maximise
short-run profits and cash flow, with the long-run intention of exiting the
market.
2. A turnaround is designed to reverse a negative trend and restore the
organisation to appropriate levels of profitability.
3. A divestiture involves an organisation's selling or divesting of a business or
part of a business.
4. Liquidation entails selling or dissolving an entire organisation.
IV.
Formulating Corporate-Level Strategy: Portfolio Strategy
Approaches
A. A portfolio strategy approach is a method of an organisation's mix of
businesses in terms of both individual and collective contributions to strategic
goals.
1. The concept is analogous to an individual's selecting a portfolio of stocks to
achieve balance in terms of risk, long-term growth, etc.
2. Portfolio matrixes are tools to enhance thinking in terms of the mix of
businesses in an organisation's portfolio.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-7
B. The BCG Growth-Share Matrix compares various businesses in an
organisation's portfolio on the basis of relative market share and market growth
rate.
1. Relative market share is determined by the ratio of a business's market share
compared with market share of its largest rival.
T38: BCG Growth-Share
Matrix: The matrix. See Figure
7-4.
2. Market growth rate is the growth in the market during the previous year
relative to growth in the whole economy.
3. Strategic business units plotted on the BCG matrix can be categorised.
•
•
•
•
The star has a high market share in a rapidly growing market.
A question mark (or problem child) has a low market share in a rapidly
growing market.
The cash cow has a high market share in a slowly growing market.
A dog has a low market share in an area of low growth.
4. Strategies are suggested by the SBU's position on the matrix.
•
•
Use funds from cash cows to fund stars and possibly question marks.
Divest dogs and less desirable question marks.
5. The BCG matrix is useful in viewing businesses as a portfolio with
differing cash flows and requirements and in allocating resource.
T39: GE Business Screen: The
business screen.
T40: Product/Market Evolution
Matrix: The matrix. See Figure
7-5.
6. Its shortcomings include the fact that it does not directly pertain to the
majority of businesses that have an average market share in markets of
average growth, generalisations based on the matrix may be misleading
because organisations with low market share are not necessarily question
marks (e.g. Mercedes automobiles), businesses with high market shares
in
slow growth markets may still need substantial investments, the matrix
doesn’t help determine which question marks to back and which
dogs to
divest, and some manager do not like the terminology (especially
‘dog’).
C. The GE business screen (also called the GE planning grid) is a nine-cell
matrix based on long-term industry attractiveness and on business strength.
1. Each business is represented by a circle, with the size of the circle
proportional to the size of the industry. The pie slice shows the business’s
marketshare within the industry.
2. For SBUs in situations of long-term industry attractiveness and business
strength, the strategic prescription is grow and build.
3. For SBUs in situations of relatively low industry attractiveness and weak
business strength, the strategy is harvest and/or divest.
4. For all others, the strategy is hold and maintain.
D. The product/market evolution matrix (or the life-cycle portfolio matrix) is a 15cell matrix in which businesses are plotted according to the business unit's
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-8
Teaching Idea:
Have students search Business
Review Weekly and other
business journals for examples
of companies that were
successful or unsuccessful in
implementing strategy.
business strengths or competitive position, and the industry's stage in the
evolutionary product/market life cycle.
1. The meaning of the circles is the same as in the GE business screen.
2. An industry is said to have reached maturity when growth slows and the
market moves toward the saturation point, where demand is limited to
replacement of the product or service.
V. Formulating Business-Level Strategy
A. Business-level strategies provide advice about specific strategies for various
businesses.
B. Michael E. Porter has developed three generic business-level strategies.
1. A cost leadership strategy emphasises organisational efficiency so overall
costs of providing products and services are lower than those of
competitors.
•
•
The business should have a cost advantage not easily or inexpensively
imitated.
Managers should consider making those product or service innovations
most important to customers.
2. A differentiation strategy involves attempting to develop products and
services viewed as unique in the industry.
•
•
Differentiation may occur in brand image, technology, customer service,
features, quality, and selection.
Costs are not as important as product or service uniqueness.
3. A focus strategy entails specialising by establishing a position of overall
cost leadership, differentiation, or both, but only within a particular portion,
or segment, of an entire market.
C. Although Porter maintains differentiation and low-cost strategies are ineffective
in broad markets, there is some evidence to the contrary.
VI. Formulating Functional-Level Strategy
A. Strategies at the functional level are important in supporting a business-level
strategy.
B. Functional areas develop the distinctive competencies leading to potential
competitive advantages.
VII. Strategy Implementation
A. Strategy implementation includes various management activities necessary to
put the strategy in motion, institute strategic controls to monitor progress, and
ultimately achieve organisation goals.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-9
Teaching Idea:
The Enterprise video, Dogfight
Over New York, is a
documentary of strategic moves
and countermoves, available
through McGraw-Hill.
B. Managers need to synchronise major organisational factors to put a chosen
strategy into action.
1. Technology is the knowledge, tools, equipment, and work techniques used
by an organisation in delivering its product or service
2. Human resources are the individuals who are members of the organisation.
3. Reward systems include bonuses, awards, or promotions provided by
others, and rewards related to internal experiences, such as feelings of
achievement and challenge.
4. Decision processes include the means of resolving questions and problems
occurring in organisations.
5. Organisation structure is the formal pattern of interactions and coordination
designed by management to link tasks of individuals and groups in
achieving organisational goals.
C. Managers need to be able to monitor progress through strategic control.
1 . Strategic control involves monitoring critical environmental factors that
could affect the viability of strategic plans, assessing the effects of
organisational strategic actions, and ensuring that strategic plans are
implemented as intended.
2. Strategic control systems include information systems providing feedback
on strategic plan implementation and effectiveness.
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IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-11
LEARNING OBJECTIVES REVISITED
1. Explain the concept of strategic management and identify three main levels of strategy.
Strategic management is a managerial process of formulating and implementing strategies geared to optimise strategic
goal achievement, given available environmental and internal conditions.
2. Outline the major components of the strategic management process.
The strategic management process comprises several components. Strategy formulation is the part of strategic
management process which includes identifying the mission and strategic goals, conducting competitive analysis and
developing specific strategies. Strategy implementation is part of the strategic management process focusing on
carrying out strategic plans and maintaining control over how those plans are carried out.
3. Describe the role of competitive analysis in strategy formulation and the major approaches to such analysis.
Porter's Five Competitive Forces model is an approach to the nature and intensity of competition in a given industry
in terms of five major forces. The model provides an environmental assessment of strategically significant elements
of the organisation's task environment. Rivalry is the extent to which competitors use tactics to lower competitors'
profits. The bargaining power of customers is the extent to which they can force down prices or bargain for better
quality or service. The bargaining power of suppliers is the extent to which they can exert power over businesses in
an industry by threatening to raise prices or to reduce quality of goods and services provided. The threat of new
entrants is the threat of a price war if new competitors enter the market. The threat of substitute products or services
is the extent to which businesses in other industries offer substitute products, thus reducing the industry's profit
potential.
4. Enumerate the main generic strategies available at the corporate level.
Growth strategies are grand strategies involving organisational expansion along a major dimension. Concentration
focuses on achieving growth of a single product or service or a small number of closely related products of services.
Horizontal integration is adding one or more similar businesses, usually by purchasing them. Vertical integration
involves achieving growth through production of inputs previously provided by suppliers or through the replacement
of a customer role (such as distributor) by disposing of one's own outputs. Diversification entails achieving growth
through the development of new areas clearly distinct from current businesses.
5. Explain the three major portfolio-strategy approaches for use at the corporate level.
A stability strategy is a grand strategy, involving maintaining the status quo or growing in a methodical manner.
Defensive strategies (or retrenchment strategies) focus on the desire or need to reduce organisational operations,
usually through reducing costs (by cutting back on nonessential expenditures and instituting hiring freezes) and asset
reductions (selling land, equipment and businesses). Harvest entails minimising investments while attempting to
maximise short-run profits and cash flow with the long-run intention of exiting the market. A turnaround is designed
to reverse a negative trend and restore the organisation to appropriate profitability levels. A divestiture involves an
organisation's selling or divesting of a business or part of a business. Liquidation entails selling or dissolving an
entire organisation.
A portfolio strategy approach is a method of an organisation's business mix in terms of both individual and collective
contributions to strategic goals. The BCG Growth-Share Matrix compares various businesses in an organisation's
portfolio on the basis of relative market share and market growth rate. The GE business
screen (also called the GE
planning grid) is a nine-cell matrix based on long-term industry attractiveness and business strength. The
product/market evolution matrix (the life-cycle portfolio matrix) is a 15-cell matrix in which businesses are plotted
according to the business unit's business strengths or competitive position, and the industry's stage in the evolutionary
product/market life cycle.
6. Describe Porter’s competitive strategies for the business level.
Porter's Five Competitive Forces model is an approach to the nature and intensity of competition in a given industry
in terms of five major forces. The model provides an environmental assessment of strategically significant elements
of the organisation's task environment. Rivalry is the extent to which competitors use tactics to lower competitors'
profits. The bargaining power of customers is the extent to which they can force down prices or bargain for better
quality or service. The bargaining power of suppliers is the extent to which they can exert power over businesses in
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-12
an industry by threatening to raise prices or to reduce quality of
goods and services provided. The threat of new
entrants is the threat of a price war if new competitors enter the market. The threat of substitute products or services
is the extent to which businesses in other industries offer substitute products, thus reducing the industry's profit
potential.
7. Explain the role of strategies at the functional level.
Strategies at the functional level are important in supporting a business-level strategy. Functional areas develop
distinctive competencies leading to potential competitive advantages
8. Outline the process of strategy implementation.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-13
Strategy implementation includes the management activities needed to put the strategy in motion, to institute strategic
controls monitoring progress, and ultimately to achieve organisation goals. Managers must synchronise major factors
within an organisation to put a chosen strategy into action. Managers must be able to monitor progress through
strategic control.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-14
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-15
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-16
ENRICHMENT MODULE
GLOBAL STRATEGY
Robert N. Lussier
This module presents a corporate global grand strategy. Its focus is primarily on the "Formulating Corporate-Level
Strategy" section of the text. However, it also refers to the "Formulating Business-Level Strategy" section as it
discusses the importance of coordinating strategy at all levels. The global grand strategy has four components: 1)
global sales, 2) global products, 3) global introduction of products, and 4) global operations.
Corporate Global Grand Strategy
Successful global companies realise
that they must pit their entire
resources against competitors in a
highly integrated way on a worldwide
basis. Success in the world market
requires a centralised global grand
strategy with various aspects of
operations
decentralised
or
centralised as economics and
effectiveness dictate.
Global
companies seek to respond to
particular local market needs of
strategic business units while
avoiding a compromise of efficiency
of the overall global system (Bolt,
1988). Headquarters and the country
managers must work together as a
team to coordinate plans at all three
levels. With slow growth in most
U.S. industries and the expanding
world economy, many companies are
developing global growth strategies.
Some of the companies successfully
using global strategic management
include
IBM
in
computers;
Caterpillar in large construction
equipment, Timex, Seiko, and Citizen
in watches; Mitsubishi in heavy
electrical equipment; and General
Electric in a variety of industries
(Ohmae. 1987).
the global triad—the U.S., Europe,
and Japan (Ohmae, 1987). GE has a
strategy of having only strategic
business units that are number one, or
a strong second, in global sales.
Under Jack Welch in the 1980s, GE
combined a defensive strategy,
liquidating over 118 lines of business, with a growth strategy,
acquiring over 50 others.
Global companies centralise product
design to develop global products.
The
production
process
is
standardised worldwide to ensure
economies of scale. However, each
strategic business unit can make
brand, package, and distribution
changes to adapt to local markets.
The production and finance functions
tend to be centralised, whereas the
marketing function
tends to be more decentralised. The
amount of decentralisation varies. A
study by Whirlpool revealed that appliances all over the world, despite
differences in consumer preferences,
are basically alike In working
components. Based on the study,
Whirlpool is designing global
products with global components
sources, with minor changes for local
preferences.
Global sales is one of the most, if
not the most, difficult strategic implementations for most companies. For
small and midsized companies, as
well as many large companies, it
takes many years to get extensive
sales in the global triad. To increase
global sales, many companies have
acquired or merged with other
companies,
or
entered
:Into
coalitions.
AT&T joining with
Olivetti and Philips in Europe and
Toshiba in Japan would be a triad
example.
Because of the global similarities,
many products do not need to be
localised at all, or can be localised
Global Products
with only minor changes to satisfy
Successful global companies view the taste differences. Gillette is using a
U.S., Europe, and Japan as one glo- centralised marketing approach with
bal market, not three.
They its Sensor razor. All countries use
accentuate the similarities of humans the same theme, "The best a man can
across the global triad, rather than get." Gillette's global commercials
emphasise differences.
With for Sensor ran virtually unaltered in
The four components of a global comparable income levels, education 19 countries. Other global products
strategy are discussed below.
levels, academic and cultural include Nike sneakers, L.L. Bean
backgrounds, lifestyles, and access to clothes, and Wilson, Price and Head
information and travel, Americans, sporting goods.
Global Sales
One will find
Europeans, and Japanese are be- Johnson's window cleaner, Pampers
Strong global companies have coming more and more alike. They disposable diapers, Scotties and
extensive sales and market share in want the same products.
Kleenex tissues, Lux soap, Cheer de-
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-17
tergent, Nestle’ coffee, Lipton tea, recorder; Canon, the AE1 camera;
and Campbell soup in supermarkets and Gillette, the Sensor razor.
around the globe.
Upjohn created Upjohn Laboratories
to create and market global products
simultaneously. The "first mover"
Global Introduction of Products
companies that deliver global
Successful
global
companies products the fastest will have the
introduce
new
products competitive advantage Of being the
simultaneously on a global basis. world leaders, at least in the short
Many companies have learned the run.
hard way that introducing a product
in one country, then bringing it to Global Operations
another country, limits global
success. When an American company Major global companies have
introduces a product in the U.S., the operating facilities throughout the
Japanese are watching. They quickly world. They are not true exporters.
copy the product, and introduce it in They realise that a local presence
Japan before the American company decreases political and exchange-rate
Export firms are often
can. The American company then risks.
perceived
as invaders and face
loses its leadership position in Japan.
protectionism
and import restrictions
U.S. companies are now using the
and
they
find
the doors to markets
same approach by going to Europe
closed.
A
true
insider will remain
and Japan for new product ideas.
open in the country while fellowCompanies using global introduction country export companies are
and their respective products include excluded.
Sony, the Walkman mobile cassette
Europe in 1992 is looking for
operations
in
the
European
Community, not imports. Japan and
the U.S. have been investing heavily
throughout the European Community.
There have been thousands of joint
ventures, acquisitions, and mergers in
Europe in preparation for 1992.
Whirlpool and Philips are one
example. (Note: For more details on
this topic see Enrichment Lecture
Module "Joint Venture in the Soviet
Union.")
To establish a local presence,
European, Japanese, and U.S.
companies are investing abroad. In
1987, all foreigners invested about
$35 billion in American businesses
and real estate, with the British in the
lead. American companies invested
at least $50 billion in their
subsidiaries and affiliates abroad,
especially in Europe (Drucker, 1989).
In 1988, Japan invested over $47
billion overseas in factories, real
estate, and companies (Main, 1989).
Sources
Bolt, J., 1988, "Global Competitors: Some Criteria for Success," Business Horizons, January/February, p.35.
Drucker, P., 1989, “The New World According to Drucker," Business Month, May, p.54.
Main, J., 1989, "How To Go Global--And Why," Fortune, August 28.
Ohmae, K., 1987, "The Triad World View", The Journal of Business Strategy, Spring, p. 1 3.
Porter, M., 1986, 'Changing Patterns of International Competition," California Management Review, Winter
The Global 1000,Business Week, July 17,1989, p.144.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-18
CASE NOTES
Striving for excellence
This segment of the on-going case talks about goal congruence and external and internal strategy fit. Students can
identify the internal and external stakeholders of Autoliv and find out what internal strategies the organisation has
to adopt in order to support the external strategies. Students could discuss the concept of self-managed teams and
how they assist in achieving organisational goals. Issues like organisational culture can also be discussed here.
Students can further discuss the role of leadership in ensuring the external and internal strategic fit.
Gaining the edge: Coming back to call back
1 Carry out some research on call back centers and compare their rates with those of Telstra for IDD calls. In
what ways are call centers a successful competitor to long distance providers?
This particular can be discussed as a debate where students can argue for and against “technological innovation is
a necessary evil” or by using Porter’s Five Forces to discuss the issues.
Investment in call centres in terms of technology and manpower is much less than long distance providers.
Regulations binding the call centres as opposed to long distance providers are more flexible. Pricing of service
rendered by call centres will be lower as opposed to long distance providers.
Case in Point: The Pavlova Kitchen
1. Develop a suitable mission statement for The Pavlova Kitchen and a manufacturing policy plus a SWOT analysis
leading to appropriate strategies. In order to do this you will need to do a bit of research on the product.
Develop a plan to enable you to carry out this task.
This question can be linked to the mission statements students come up with in the first question. The strategic
plans should be linked with the mission statement. Students need to first set the goals at the strategic level, in
other words, who are the stakeholders of Pavlova Kitchen, then students can start looking at marketing
strategies and production and finance strategies. Issues like size of the business, number of employees, existing
systems and processes need to be identified. Then the strengths and weaknesses of the existing systems need to
be described. Students can answer the question by splitting the class into four groups where one group could be
the senior management, the second group the middle level management and the third group as the functional
level. The fourth group can be the stakeholders. This question is very appropriate for a group discussion.
What are the main problems which face the owners of the business?
2. Develop a strategic plan for this organisation which will enable them to meet their goals.
Small businesses have many issues to deal with in order to survive. In this case the size, the product is seasonal
and demand is fluctuating with the result the business growth is not steady. Diversification therefore becomes
restricted. Secondly, customer demand for the product may vary in the future with their changing lifestyle.
Financial constraints will also be there as the size of the business is small.
3. What are the main problems which face the owners of this business?
Outsourcing of pavlova manufacture could be one strategy, increase the capacity utilisation of the
manufacturing equipment, look at alternative methods of preservation and production. Depending on the
international demand, the Millars could open overseas production sites which will devolve the production
function.
4. How can the owners satisfy market demand for their products without working excessive hours during the peak
season?
Quality is dependent on the production standards, the equipment, the manufacturing process involved in the
making of the pavlovas is very dependent on temperature, and following the sequential steps etc.
5. What are the main aspects of quality management in this company and how could they be controlled?
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-19
Look at byproducts which can be a diversification strategy for the company, look at selling them to other
businesses which are similar to this business.
Cross Roads: Cuisine-Fast food style
Decision Point:
1. What are the factors which, if you were the managing director of Cuisine Courier, Matt Whitnall, you might
have wanted to consider before you committed yourself to such an expansion?
Students here need to look at the impact of technological change on the service provided. Some of the factors that
need to be considered from the CEOs perspective are the level of technology that currently exists in the company.
In other words, what is the capacity of the current computer systems in the organisation. What is current status of
the manpower of the computer department. Students can look at the issues like skill levels, number of employees,
experience, current problems etc. Other factors include financial status of the company, whether the company is
in a position to take on this investment. Issues like after sales service need to be considered. Investments in
setting up the procedures, and training the staff to handle internet sales is important.
Reflection Point
1. In your opinion is fast food home delivered via the internet a good idea? Why?
It has its own advantages and disadvantages. Advantages include quick delivery, on line changes made to serve
the customers.
Disadvantages include computer breakdown due to power fluctuations, lack of computer skills amongst the
employees manning the computer
The Reflective Practitioner
The managing director’s diary is a reflection on how the leader in an organisation or the manager in an organisation
is responsible for deployment of the strategic objectives down the hierarchy. The stakeholders of the organisation
should be taken into account when setting the strategic objectives. In addition, the vision and the mission statement
are equally important. Students should also look into the influence of structure and culture in the setting the
objectives. Issues like to what extent does the strategic objectives influence the allocation of tasks and the creation of
the culture in the workplace?
Students can also discuss the inter-links between strategy structure and culture and the role of leadership in the
integration.
The subordinate’s log reflects the role of a supervisor in the strategic management process. For an organisation to
achieve its vision it is imperative that the goals and objectives are communicated down the line uniformly. Business
and functional level objectives need to realistic and operational. Problems in achieving the strategic goals occur
when there is a gap between the strategic goals and operative goals. Therefore communication plays a vital role in
the filtration of the goals and objectives.
At the functional level the organisational structure is very important in terms of task allocation, establishing the
job expectation, responsibilities and accountabilities. Therefore, it is very important that the strategic objectives are
clearly communicated down the line and the systems and processes adopted by the organisation should support the
strategic objectives.
On the Rim—in Australia: The Strategic Development of Melba's Chocolate Factory
1. Describe the evolution of the strategic types which the Foristals have used.
The case is a classic example of how the external environment impacts on internal changes in the organisation
fostering innovation.
Students could use Porter’s competitive strategies to analyse the case. For example, cost leadership strategy
has been achieved by Melba’s by being an owner operator in a cottage industry. In other words, costs of the
products were kept down by using relatively inexpensive method for producing personalised logo moulds with
few overheads. In addition, technological innovation like creating a mould for the personalised chocolates
differentiated it from the only other known producer’s method.
Focus strategy was adopted when Graeme decided to become an entrepreneur. Students here could define the
meaning of entrepreneurship and differentiate it from intrapreneurship.
Changes in the external economic environment like the recession created opportunities for growth. This
enabled them to adopt a differentiation strategy. Like expansion into floral cashell and sugar tableted lines,
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-20
promotion into tourism. The shift from focus to differentiation involved covering a wide range of old fashioned
products like truffles, hand dipped lines of snowballs and biscuits were developed. Students could further identify
some of the differentiation strategies adopted by Melba’s in response to the changing environment. While
students could look at corporate strategies using Porter’s model, they could also look at some the functional level
strategies which Melba’s adopted in order to complement the corporate level strategies. Some of the functional
level strategies included restructuring in terms of task allocation, delegation of authority and responsibility.
2. Perform a SWOT analysis for the organisation as it exists today and discuss a number of strategies they might
use to further expand their operations.
Firstly, students should be able to define the term SWOT.
Strengths could include: Leadership abilities of Joy and Graeme, market image of Melba’s, relationship with
external stakeholders, product pricing, their international links. Its historical disposition, size and historical nature
of Melbas building, historical equipment and historical confectionery lines.
Weaknesses: very industry specific, small business, no appropriate person to manage the show, growth has been
instant and not steady.
Opportunities: for collaboration in the future with similar companies, look at growth in other states in Australia,
diversify into international markets by starting production overseas, diversification even in terms of other
confectionery products like biscuits, cookies, ice-creams etc.
Threats: Possibility of takeover by large corporations, keeping an edge over competitors in terms of pricing and
quality, stakeholders satisfaction.
Some of the strategies could include collaboration with foreign subsidiaries, sales offices across continents, look
at sporting events and catering to other special events, holding confectionery fairs.
3. In order to become even more “hands-off”, what are the activities which the Foristals might need to shed? How
do you suggest they achieve this and not lose control of their organisation?
Restructuring in terms of having clear cut roles and responsibilities amongst employees. A separate HRM
departments needs to formed which has the responsibility for work cover, O&HS, on the job training on
supervisory skills is required on an ongoing basis, procedure manuals have to be in place, systems and procedure
controls have to be in place.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-21
SOLUTIONS TO QUESTIONS FOR DISCUSSION AND REVIEW
Chapter Seven discussion focuses on the application of strategic thinking to the real world. Such application is best
shown through cases, or detailed applications of theory to a specific example. Be thorough with each example or
answer supplied by students. Students will often accept a specific example, but the instructor's task is to help them
generalise to new examples. Emphasise that a single situation may have multiple answers (why we have horse
races), but that the theory helps limit the range of answers.
1. Explain the concept of strategic management
and the notion of competitive advantage. Identify
an organisation you think has a competitive
advantage in its industry, and describe the nature
of its competitive advantage.
Strategic management is a managerial process of
formulating and implementing strategies geared to
optimise strategic goal achievement, given available
environmental and internal conditions. Strategies are
large-scale action plans for interacting with the
environment to achieve long term goals. Most wellrun organisations attempt to develop and follow
strategies.
2. Outline the major components of the strategic
management process. Explain why engaging in
strategic management is likely to be beneficial for
an organisation.
The strategic management process comprises several
components. Strategy formulation is the part of
strategic management process which includes
identifying the mission and strategic goals,
conducting competitive analysis and developing
specific strategies. Strategy implementation is part
of the strategic management process focusing on
carrying out strategic plans and maintaining control
over how those plans are carried out.
3. Distinguish between three levels of strategy.
Explain the role of each in an organisation with
separate divisions competing in different
industries.
In the entrepreneurial model, strategy is developed
mainly by a strong, visionary chief executive who
actively searches for new opportunities, is heavily
oriented toward growth, and is willing to make bold
decisions or to shift strategies rapidly when
desirable. The adaptive mode is mainly a "muddling
through" approach, emphasising
taking
small
incremental steps, reacting to problems instead of
seeking opportunities, and attempting to satisfy
several organisational power groups. The planning
mode of strategy formulation involves systematic,
comprehensive analysis, with integration of various
decisions and strategies.
4. Explain SWOT analysis. Conduct a brief
SWOT analysis of your institution by developing
two items for each of the four SWOT categories.
SWOT analysis is a method of an organisation's
competitive situation by assessing organisational
strengths (S) and weaknesses (W), as well as
environmental opportunities (0) and threats (T).
5. Outline Porter's five competitive forces model.
Use the model to assess the nature and intensity
of competition in an industry with which you are
familiar.
Porter's Five Competitive Forces model is an
approach to the nature and intensity of competition
in a given industry in terms of five major forces.
The model provides an environmental assessment of
strategically
significant
elements
of
the
organisation's task environment. Rivalry is the
extent to which competitors use tactics to lower
competitors' profits. The bargaining power of
customers is the extent to which they can force down
prices or bargain for better quality or service. The
bargaining power of suppliers is the extent to which
they can exert power over businesses in an industry
by threatening to raise prices or to reduce quality of
goods and services provided. The threat of new
entrants is the threat of a price war if new
competitors enter the market.
The threat of
substitute products or services is the extent to which
businesses in other industries offer substitute
products, thus reducing the industry's profit
potential.
6. Explain how the resource-based strategic view
can be used to aid organisational assessment. Use
the view to assess an organisation's resources and
capabilities in the industry you analysed in the
previous question
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-22
In the resource-based strategic view, the following
factors are used to make an assessment of the
organisation:
Value: Do a firm’s resources and capabilities add
value by enabling it to explore opportunities and/or
neutralise threats?
Rareness: How many competing firms already
possess these valuable resources and capabilities?
Imitability: Do firms without a resource or capability
face a cost disadvantage in obtaining it compared to
firms which already possess it?
Organisation: Is a firm organised to exploit the full
competitive potential of its resources and
capabilities?
7. Describe three major generic strategies
available at corporate level, and explain
subcategories within each. For each generic
strategy, identify an organisation appearing to
pursue that particular strategy.
Growth strategies are grand strategies involving
organisational expansion along a major dimension.
Concentration focuses on achieving growth of a
single product or service or a small number of
closely related products of services. Horizontal
integration is adding one or more similar businesses,
usually by purchasing them. Vertical integration
involves achieving growth through production of
inputs previously provided by suppliers or through
the replacement of a customer role (such as
distributor) by disposing of one's own outputs.
Diversification entails achieving growth through the
development of new areas clearly distinct from
current businesses.
8. Contrast two major approaches to portfolio
strategy at corporate level. If you were on the
strategic planning staff of a major company with
35 different businesses, which approach would
you recommend and why?
A stability strategy is a grand strategy, involving
maintaining the status quo or growing in a
methodical manner.
Defensive strategies (or
retrenchment strategies) focus on the desire or need
to reduce organisational operations, usually through
reducing costs (by cutting back on nonessential
expenditures and instituting hiring freezes) and asset
reductions (selling land, equipment and businesses).
Harvest entails minimising investments while
attempting to maximise short-run profits and cash
flow with the long-run intention of exiting the
market. A turnaround is designed to reverse a
negative trend and restore the organisation to
appropriate profitability levels.
A divestiture
involves an organisation's selling or divesting of a
business or part of a business. Liquidation entails
selling or dissolving an entire organisation.
A portfolio strategy approach is a method of an
organisation's business mix in terms of both
individual and collective contributions to strategic
goals. The BCG Growth-Share Matrix compares
various businesses in an organisation's portfolio on
the basis of relative market share and market growth
rate. The GE business screen (also called the GE
planning grid) is a nine-cell matrix based on longterm industry attractiveness and business strength.
The product/market evolution matrix (the life-cycle
portfolio matrix) is a 15-cell matrix in which
businesses are plotted according to the business
unit's business strengths or competitive position, and
the industry's stage in the evolutionary
product/market life cycle.
9. Describe Porter's competitive strategies for
the business level. Assess the competitive strategy
of an organisation with which you are familiar,
and explain its usefulness in dealing with Porter's
five competitive forces.
Michael E. Porter has developed three generic
business-level strategies. A cost leadership strategy
involves emphasising organisational efficiency so
overall costs of providing products and services are
lower than competitors'. A differentiation strategy
involves attempting to develop products and services
viewed as unique in the industry. A focus strategy
entails specialising by establishing a position of
overall cost leadership, differentiation, or both, but
only within a particular portion, or segment of an
entire market.
10. Outline
the
process
of
strategy
implementation. Which corporate-level generic
strategy do you believe is being pursued by your
college or university? Evaluate the effectiveness
of strategy implementation at your college or
university.
Strategy implementation includes the management
activities needed to put the strategy in motion, to
institute strategic controls monitoring progress, and
ultimately to achieve organisation goals. Managers
must synchronise major factors within an
organisation to put a chosen strategy into action.
Managers must be able to monitor progress through
strategic control.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-23
EXERCISES FOR MANAGING IN THE 21st CENTURY
EXERCISE 2
SKILL BUILDING EXERCISE: WHAT STRATEGY IS THIS?
Overview
Students are provided with characteristics of different company strategies They are asked to select strategies that
different characteristics could be expected to support according to Porter: cost leadership, differentiation, or focus.
Objectives
To provide students the opportunity to gain skills in identifying different types of strategies.
To help students learn the difference between cost leadership, differentiation, and focus strategies.
Suggested Time Schedule
Introducing the exercise
Classifying strategies
Class discussion
Total
5 minutes
10 minutes
10 minutes
25 minutes
Solutions
1. Differentiation
2. Differentiation
3. Focus
4. Cost Leadership
5. Focus
6. Differentiation
7. Cost Leadership
8. Focus
9. Differentiation
10. Cost Leadership
EXERCISE 2
MANAGEMENT EXERCISE: DEVELOPING A STRATEGY FOR A COUNTRY SCHOOL IN NSW.
Objective
Experience with:
developing a grand strategy,
using a portfolio strategy analysis, and
using Porter's generic business strategies.
Suggested time schedule
Introduce exercise and form groups
Developing a grand strategy and using portfolio strategy analysis
Applying Porter’s generic business strategy
Small group reports
Total
5 minutes
15 minutes
10 minutes
20 minutes
50 minutes
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-21
Operating Suggestions
With this exercise, expect a variety of analytical approaches and strategic choices from your students. As
a result, this exercise is probably best used as a written assignment rather than as an in-class project. It
can be done individually or in small groups.
To focus student efforts, give them a brief outline of what you expect. For example:
Grand Strategy: one page. Specify your grand strategy and explain why you chose it.
Business Selection: two to three pages. Do a portfolio analysis of the businesses available for acquisition
as well as setting up. Specify what two you would do, and explain why.
Business Level Strategies: one page for each possible business. Using Porter's generic strategies,
develop a strategy for each new concept and explain why you think it will be successful.
SUPPLEMENTARY EXERCISE 1: SHORT INTERACTIVE
USING THE BCG MATRIX
Write the information about each of the four businesses described below on an overhead or on the board (Do not
write the answers, which are given in parentheses).
Then read the following three sentences to the students: “Assume you are a consultant and have been called into a
local company, Black & Blake, to help them classify their existing businesses on the BCG Matrix. The company's
business are mainly related to the health care industry. How would you classify the following businesses on the
matrix?”
Have them write down their classification of each business. Then ask for volunteers to give their answers and their
reasoning.
The four businesses to be classified are as follows:
QUESTION
MARK
Business has patent for new type of cast that makes it easier to set broken bones accurately.
Current market share is small, but with the right marketing push, prospects for growth are good.
CASH COW Business makes a well-known hospital bed and has a large market share. The technology
is stable and the business is highly profitable, but growth is slow because relatively few
new hospitals are being built these days.
DOG
Business makes disinfectants and other cleaning materials used particularly in hospitals.
Market share is small.
STAR
Business has most of current market for artificial veins and arteries made out of revolutionary new
patented material. Many areas for growth, including heart surgery.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-22
SUPPLEMENTARY EXERCISE 2: EXPERIENTIAL
PROFILING A LOCAL BUSINESS
Objective
To determine whether local businesses use strategic management methods, and ff so, how effective they are.
Experience
1. Students will discover how familiar practicing managers are with strategic management techniques.
2. They will then analyze the positive and negative factors related to the level of strategic management they
observe.
3. Finally, they will devise a general statement regarding the usefulness of strategic management to
ongoing businesses.
Material
Writing materials and local business managers who are willing to talk with students.
Procedure 1
Divide into groups of four to five. Based on the group members' understanding of the text material, write out a
profile of the strategic management process that you would expect to find a strategic manager engaged in. Refer to
your text discussion of "The Strategic Management Process" to develop your expected profile. Also add aspects of
SWOT analysis (as described in the text) as well as aspects of Porter's generic strategies (overall cost leadership,
differentiation, and focus).
Procedure 2
Arrange an appointment with a local small business manager, meet this person (please be prompt), and use your
profile as a basis for your interview. Do not be surprised if the manager does not know what strategic management
methods are. Unfortunately, this may be true of many businesses. Sometimes too, managers use some of the same
concepts, but may use different terms to describe them. So be sure to listen carefully. If necessary, ask some general
questions about how the manager makes plans to be successful and move ahead of the competition. If it appears that
the manager does not do any strategic management, be careful not to criticise.
Procedure 3
Reconvene your group and compare the results of your interview with your profile. Select a spokesperson to give a
brief report of your findings (along with the findings of other groups) to the class in a general class discussion.
Group Questions
What factors can you see that lead practicing business managers to either 1) use strategic management tools, or 2)
not use strategic management tools? What is the advantage of practicing strategic management? Can you see areas of
business practice that either 1) benefit from the use of strategic management, or 2) create problems because of the
lack of strategic management? Does the local business manager understand the importance of Porter's generic
strategies?
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-23
Class Questions
1. Does strategic management make sense? Why, or why not?
2. What constraints exist that inhibit practicing managers from using strategic management methods?
3. In looking at the businesses students visited, what specific positive outcomes could result from strategic
management? Why?
4. What must happen for the managers interviewed by the students to begin strategic management?
Conclusion
The course instructor will summarise the results of the various group reports and the general discussion, and tie the
findings to the text material.
Reinforcement
What did I learn from this experience? How will I use this knowledge in the future?
Teaching Notes
Operating Suggestions
This particular exercise gives students an idea of how critical strategic management is in businesses. By
interviewing a small business owner or manager, they will discover just how much this person knows (or more often
than not, does not know) about the strategic management process. Begin by dividing the class into smaller groups of
four to five, and give each group the assignment of contacting a local small business and setting up an appointment
for an interview of no more than one-half hour. Students should be strongly encouraged to be prompt. Before the
appointment, the students should meet as a group to formulate a profile of "good" strategic management and
questions which will test this profile. Instruct the students to be sure that all the questions are asked during the
interview, but other questions may be asked if time permits. Caution them not to react with direct or implied
criticism if the manager does not appear to know much about or use strategic management. Students should keep to
the half-hour time frame. After the interviews, instruct students to reconvene to discuss whether the interview results
match their profile and to analyse these findings for a class discussion. Reconvene the class and discuss (via a
spokesperson for each group) each group's profile of a "good" strategic management process, what the group found,
and what the group can conclude about the company interviewed.
Timing for the exercise should approximate the following:
30 minutes for groups to develop profiles (in or outside class)
1 hour travel and interview time (out of class)
30 minutes to summarise group findings (in or outside class)
30 minutes for in-class discussion
Discussion
Each group should have two important things when they have completed their interview and discussions:
1) a profile of what a well-run strategic management program might look like, and 2) a profile of a real-world
business, which most likely does not fit the profile very well. While this lack of “fit” does not necessarily mean that
the business is in imminent danger, it may point to problem areas which may need attention to prevent serious
trouble for the company. The major task of the in-class discussion will be to tie the interview outcomes to the text
presentation of sound strategic management principles and to see whether any prescriptive measures might be
recommended to the small business person along with why these measures should improve the operations and
longevity of the enterprise. Also, by having a variety of companies to discuss in the in-class discussion, you may be
able to pick out trends of business activities that are either good or bad in terms of strategic management objectives,
and you should be able to make a good case for the importance of practicing strategic management methods for
productive, profitable, and successful enterprises.
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-24
IRM t/a Bartol et al: Management: A Pacific Rim Focus 3e © 2001 McGraw-Hill Book Co Aust Pty Ltd, page 7-25